10 October 2011

Paying Commission for Advice

I recently saw a post on a local online forum where someone was saying that their financial adviser didn't charge for the advice. Instead they just took the commission from the product provider.

Do people not realise who is actually paying the commission? Them! It is deducted from their investment, regular premium payments, or whatever.

With commission payments it is the product provider who is deciding how much the investor is going to pay. Paying your adviser on a fee-basis is much better for you - you can agree with your adviser what the cost will be rather than being landed for it!

(Did I mention that I am a fee-based financial adviser?!)

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